ARE MY EMPLOYEES PAID ENOUGH?

Context

A business knows, based on previous research, that the turnover of their workers is slightly higher than turnover of similar workers for other Mid-Missouri businesses.

Because research in some employee groups in other businesses has indicated that high wages can encourage workers to decide to stay with their current employer, the business wants to know how their employee’s wages stack up against those of similar workers in other businesses in mid-Missouri and the nation.

Question

Are our employees’ wages higher, lower, or the same as other workers of the same type compared to the nation and mid-Missouri?

Results

The business’s average wages were slightly lower than average wages for similar workers in the U.S. but slightly higher than average wages for similar workers in Mid-Missouri. However, statistically-speaking, the slight difference in wages was not meaningful.

Insights

Based on this analysis, there is good evidence the business pays its workers the same as other businesses pay similar workers.

Recommendations

Although the businesses’ wages are not statistically different from other businesses, the business’s workers might perceive the wages to be different. This analysis didn’t address that possibility.

The business might choose to conduct additional research to ask their workers if they perceive their wages to be lower than similar workers. In this case, the results of the current research might be used in an employee morale campaign to convince employees that they are being paid the same as other workers in the area.

In addition, research in some employee groups in other businesses has indicated that working conditions and benefits also contribute to workers’ decisions to remain in their jobs.

The business might choose to conduct additional research to ask the business’s workers whether wages, working conditions, or benefits are more important to the their decision to stay or to leave.

Having this information would allow the business’s managers to make a data-based decision on whether to change wages, working conditions, or benefits to encourage their workers to continue working for the business.